Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Tuesday May 3, 2016
For 2016 I would like to wish all of you discipline and patience in your trading!
May started with some of the European markets closed or abbreviated due to “May Day”. Nice up move on stocks and nice down move on bonds/ 10 years. I mentioned this before on how I like bonds and 10 years as another market to observe and day trade. It has a different personality and behaves quite differently than stock index futures ( many times inverse correlation), energy or metal futures.
Interest Rates, 10 year and 30 year.
In most platforms, the symbols are ZB for 30 year bonds and ZN for 10 year notes. The current front month is June which is M. So ZBM6 for example.
|Contract Size||The unit of trading shall be U.S. Treasury Bonds having a face value at maturity of one hundred thousand dollars ($100,000) or multiples thereof|
Points ($1,000) and 1/32 of a point. For example, 134-16 represents 134 16/32. Par is on the basis of 100 points.
|Underlying Unit||One U.S. Treasury note having a face value at maturity of $100,000.|
|Deliverable Grades||U.S. Treasury notes with a remaining term to maturity of at least six and a half years, but not more than 10 years, from the first day of the delivery month. The invoice price equals the futures settlement price times a conversion factor, plus accrued interest. The conversion factor is the price of the delivered note ($1 par value) to yield 6 percent.|
|Price Quote||Points ($1,000) and halves of 1/32 of a point. For example, 126-16 represents 126 16/32 and 126-165 represents 126 16.5/32. Par is on the basis of 100 points.|
|One-half of one thirty-second (1/32) of one point ($15.625, rounded up to the nearest cent per contract), except for intermonth spreads, where the minimum price fluctuation shall be one-quarter of one thirty-second of one point ($7.8125 per contract).|
|Contract Months||The first five consecutive contracts in the March, June, September, and December quarterly cycle.|
These contracts are often affected by many of the economic reports that come out at 8:30 Am Eastern and there is very active volume between the hours of 8 am EST and 3 PM EST
Volume on both contracts is very good. Ten years will often have 1 million contracts traded per day
(might be the second most active US futures market after the mini SP 500) and the bonds will avg. around 300,000 contracts.
These markets can experience very volatile movements during and right after different reports but then will often trade smooth or in an intraday trend the rest of the day.
If you do need feedback, would like to chat/ consult with an experienced broker about any specific markets or strategies, feel free to contact us.
Here is today’s intraday chart of the bonds ( 15 minute chart):
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
|Contract June 2016||SP500||Nasdaq100||Dow Jones||Mini Russell||Dollar Index|
|Contract||June Gold||July Silver||June Crude Oil||June Bonds||June Euro|
|Resistance 3||1318.5||18.42||47.46||164 14/32||1.1654|
|Resistance 2||1312.2||18.24||46.80||163 31/32||1.1602|
|Resistance 1||1302.1||17.89||45.85||163 1/32||1.1567|
|Support 1||1285.7||17.36||44.24||161 20/32||1.1480|
|Support 2||1279.4||17.18||43.58||161 5/32||1.1428|
|Support 3||1269.3||16.83||42.63||160 7/32||1.1393|
|Contract||July Corn||July Wheat||July Beans||July SoyMeal||June Nat Gas|
|TueMay 3||4:30am||GBP||Manufacturing PMI||51.3||51.0|
|10:00am||USD||IBD/TIPP Economic Optimism||46.6||46.3|
|10:30am||USD||FOMC Member Mester Speaks|
|All Day||USD||Total Vehicle Sales||17.3M||16.6M|
|7:01pm||GBP||BRC Shop Price Index y/y||-1.7%|